Gold prices in UAE drop Dh3.25 as ceasefire talks fail
The 24K gold price was trading at Dh562.50 per gram on Tuesday morning, down from Dh565.75 per gram at the market close on Monday.
The other variants also slightly dipped, with 22K, 21K, 18K and 14K, trading at Dh520.75, Dh508.75, Dh499.25 and Dh428.0 per gram, respectively.
Globally, spot gold lost around $26.96 (Dh102), trading at $4,652.74 (Dh 17,083.13), down from Dh17,335.9 at the market close on Monday. Silver was down by 2.45, trading at $73.79 (Dh271.15).
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Analysts say gold’s outlook will largely depend on how geopolitical tensions evolve.
Vijay Valecha, Chief Investment Officer at Century Financial, said gold could face pressure in the event of a major escalation. If the Strait of Hormuz remains closed and alternative crude routes through the Red Sea are also disrupted, oil prices may rise toward their March 2026 highs. This could push treasury yields higher and strengthen the US dollar, weighing on gold as inflation concerns grow and expectations for interest rate cuts fade through most of 2026.
However, he added, a scenario where “a peace deal is agreed upon, the Strait of Hormuz is reopened, and oil flows start to improve significantly: This will be bullish for gold as oil prices, treasury yields and the dollar are pressured downwards with reducing inflation expectations potentially opening the door for future rate cuts. Gold could trend higher to pre-conflict levels.”
